May 11th, 2021 | 11:05 CEST
First Majestic Silver, Blackrock Silver, Xiaomi - The resurrection!
The precious metals gold and silver are celebrating a comeback since their correction low in March. The fear of impending inflation is now slowly entering the consciousness of every investor. But silver serves not only as a safe haven or capital protection. In times of the energy transition, gold's little brother is becoming increasingly important. For solar panels, sensors of wind turbines, in the entire e-mobility and the development of the 5G network, the white metal is indispensable. Take advantage of the still favorable opportunities and benefit from this development in the long term.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
CA32076V1031 , CA09261Q1072 , KYG9830T1067
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Blackrock Silver - Outstanding development
Almost every week, one hears voices from different countries about the energy turnaround. Now Germany wants to achieve the climate neutrality previously targeted for 2050 already in 2045 and accelerate the expansion of renewable energies once again. The promotion of battery-powered vehicles is also highly encouraged by politicians. The switch from internal combustion engines to electric cars will massively increase the demand for silver. The production of a gasoline-powered vehicle uses up to 28 grams of silver, while an electric vehicle requires up to 50 grams of the precious metal. Due to the extreme demand, experts expect a total requirement of around 60 million ounces as early as this year. Demand will increase by about 8% p.a. over the next five years.
The electric car boom is like water on the mills for silver producers. In Nevada, known as the "Silver State," Blackrock Silver has two up-and-coming projects. The most important project at the moment, Tonopah West, covers a large area west of the Tonopah Silver District. In what is known as the Walker Lane trend, this area has historically produced the highest silver discoveries. Blackrock Silver's primary objective is to prove the western extension of the district and restore the Tonopah Silver District to a significant producing area. Within one year, 53,000 meters have already been drilled. Currently, four drill rigs are still operating for the remaining 17,000 meters of the 2021 program. A resource estimate is then expected at the end of the year.
The results announced last week were impressive. Ten high-grade veins ranging in size from 400 meters to 1.5 kilometers in strike have been identified in the programs to date, almost all of which remain open for expansion. The results underpin the high-grade nature of the DPB and Victor targets and highlight the significant silver and gold potential within these two growing target areas. Blackrock Silver's management therefore expects positive news flow regarding further high-grade discoveries for the full year 2021. Despite the positive news, the Canadian's shares are trading at CAD 0.80, down nearly 50% from last year's high. A very interesting silver explorer, suitable for admixture in any portfolio.
First Majestic Silver - Robust results
Strong metal sales, robust silver prices and above-average premiums for coins and bars were the reason for the good results for the first quarter of 2021. Sales of the Canadian Company, which focuses on mines in Mexico, increased by 17% year-on-year to USD 100.5 million. The Company reported record results in the sale of bars and coins through its online store, which has been in operation for 13 years. Due to the extreme demand for physical silver, revenues rose to USD 4.8 million. To meet the demand, First Majestic Silver even had to cooperate with numerous mints and refineries. Net income returned to the black at USD 1.9 million compared to a loss of USD 32.4 million in the 2021 quarter. The total available liquidity is USD 297.8 million, including an undrawn revolving credit facility of USD 65.0 million. Based on the strong results, the Company is rewarding shareholders with a quarterly dividend of USD 0.0045 per common share for the first time in Company history. Chart-wise, the stock could complete a bottoming at EUR 12.50. The next price target would be the resistance at EUR 14.80.
Xiaomi - In the fast lane
One man's joy is another man's sorrow. This saying applies to smartphone sales for Europe in the first quarter. Huawei, the former top dog, lost a staggering 81% and is now a distant 5th with a measly 3% market share. The technology Company Xiaomi took advantage of this weakness and grew by a staggering 81% in the opening quarter of 2021. With a market share of 23%, the Chinese even overtook the US giant Apple, which is in third place with 19%. Samsung remains the undisputed leader with 35%. Despite their market dominance, the South Koreans were even able to increase sales by 21% in the first three months compared to the previous quarter.
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